In a slow-growth environment such as this, productivity gains are paramount. This could be a boon for industrial equipment manufacturers. Industrial equipment manufacturers can best serve their customers by designing equipment and tools that improve the efficiency, performance, and costs of factories and other capital projects.
The industrial equipment industry consists of establishments engaged in the production of essential power and hand tools, small-scale machinery, and other industrial components. The industrial equipment industry includes power polishing and metal-working machines, saws, drills, springs, valves, nuts, bolts, screws, pneumatic hoses and other necessary industrial equipment. Driven by the advent of new technologies, the manufacturing industry has undergone an enormous transformation and is witnessing unprecedented demand from niche and emerging market segments. The growth of industrial equipment is also fueled by the recovery in the automobile and heavy-machinery segments.
Although the industrial equipment manufacturing sector is witnessing promising growth, several factors are expected to influence the growth prospects in the coming years. They include:
- Sustaining technological and business viability: Industrial equipment manufacturers face the need to segment customers, identify their need and wants and invest heavily in technology development and commercialization. They must create a win-win environment to reduce risks and improve the overall efficiency of the industry.
- Need for both research and people: Firms across the industrial equipment space need a continuous flow of technical innovation and constant training of people to gain a stronger foothold in the market and segment their customers accordingly.
These factors are compelling industrial equipment manufacturers to leverage the use of market segmentation solutions. Market segmentation solutions help firms overcome the factors influencing the growth, take advantage of the new prospects, and reduce costs. These solutions also assist companies in profiling the needs and want of the customers and develop the offerings accordingly.
The Business Challenge
- The client: A leading industrial equipment
- Area of engagement: Market segmentation
The client, a renowned manufacturer of industrial equipment, was facing concerns profiling the customer segments and allocate their resources accordingly. As a result, the client wanted to profile the best customer segments and accordingly allocate resources to these pre-determined segments. Additionally, to reduce the risk of ineffective marketing campaigns, they wanted to classify the customer demand for products and services and efficiently target the audiences while being cost-effective.
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To help the client measure the market size, the market segmentation experts at Infiniti carried out extensive interviews and discussions with prominent stakeholders within the industrial equipment manufacturing space. Furthermore, to identify potential market segments and target specific customer groups, the experts also collated information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.
The Solution Offered and the Business Impact
With the help of Infiniti’s market segmentation engagement, the industrial equipment manufacturer was able to increase their focus on devising a marketing mix that can go on par with the expectations of the customers. The client also defined the markets into subsegments and profiled the potential customers based on similar needs, wants, and demand characteristics. The market segmentation engagement offered personalized marketing campaigns to target best customers while being cost-effective. The client also sought ways to supply the needs and better allocate resources to meet customer requirements across the market space.
Technology, especially information technology (IT), is transforming the entire industrial equipment industry and leading to unconventional growth. Digitizing the manufacturing, engineering, and supply network are vital as most supply chains today are no longer fit to contest in a digital world. Additionally, firms must start managing the supply network as a digital ecosystem to equip the organization for enabling quick movement into new geographies, growth, support for new value delivery approaches and creation of innovative product and service offerings.